KEY POINTS
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Largo has started producing copper, gold, platinum and palladium as vanadium by-products.
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Nine-month vanadium production rose 23% year on year to 7,609 tonnes.
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The company is targeting higher margins through premium vanadium products and diversified metal sales.
Largo has diversified its mining operations by beginning production of copper, gold, platinum and palladium as by-products of its core vanadium business, as the company seeks to improve profitability and strengthen cash generation at its Maracás Menchen mine in Brazil.
The Toronto Stock Exchange- and Nasdaq-listed vanadium and ilmenite producer said the new metals began contributing to its product portfolio during the quarter ended September 30, 2026.
Largo produced 2,093 tonnes of vanadium pentoxide (V₂O₅) during the third quarter and sold 2,428 tonnes of vanadium pentoxide equivalent.
For the first nine months of 2026, production reached 7,609 tonnes, representing a 23% increase from the corresponding period last year. Sales totalled 7,223 tonnes, up 15% year on year.
The company said its sales strategy involved reducing inventory to improve liquidity and directing supplies towards demand that offered more profitable returns.
Copper, gold and platinum-group metals boost output
Largo reported producing 108 tonnes of copper contained in concentrates during the third quarter. Gold production reached 289 ounces, marking the first recorded output of the metal as a vanadium by-product.
The company also produced 166 ounces of platinum and 291 ounces of palladium contained in concentrates during the period.
Largo said it sold copper, gold and platinum-group metal concentrates to three major commodity traders and a European smelter, indicating commercial demand for its diversified product range.
The company also sold 13,902 tonnes of iron-ore calcine to the domestic Brazilian market.
However, ilmenite production was suspended during the quarter as Largo redirected its flotation plant infrastructure towards copper, gold and platinum-group metals, which it considers higher-margin opportunities.
Studies are under way to determine whether ilmenite production can resume in the medium term.
Company prioritises profitability over vanadium volumes
Largo executive chairperson and co-CEO Alberto Arias said the diversification strategy could reduce overall vanadium production volumes but was intended to increase the value generated from each tonne of material processed.
He said the company was also considering a potential expansion of its copper, gold and platinum-group metals business while maintaining strict cost controls to offset high consumables costs.
According to Arias, the strategy is designed to maximise the value recovered from the Maracás Menchen mine and its associated metallurgical facilities while supporting the company’s long-term financial and operational objectives.
Largo targets high-value vanadium markets
Co-CEO James Bannantine said Largo was working to expand demand for its higher-value vanadium products by strengthening relationships with customers in the defence, aerospace and energy-storage industries.
He highlighted the company’s first $60 million purchase order for high-purity vanadium from the US Defense Logistics Agency as an important commercial milestone.
Largo is also seeking to increase its high-purity vanadium output to improve realised prices, expand margins and strengthen cash flow.
A recent optimisation study indicated that high-purity vanadium could account for about 68% of total production, at an overall production rate of approximately 876 tonnes per month.
Bannantine said the company was assessing how the proposed product mix would affect production volumes, selling prices, operating margins and cash flow.
Alongside its traditional vanadium business, Largo plans to advance sales and customer deliveries of copper, gold and platinum-group metals as it develops the new by-product operations.
